Chinas’ tech stocks continue to surge due to DeepSeek’s hype

The Hang Seng Tech Index gained 2.5% on Friday, with a total increase of more than 20% since January. It appears that DeepSeek’s hype has erased concerns of trade wars among Chinese investors, due to which China’s tech stocks in Hong Kong continue to surge.

According to a report by Bloomberg , this price movement suggests a technical bull market for China’s tech stocks, as Lenovo, Li Auto, and Xiaomi have taken the lead.

Due to the hype around DeepSeek, investors are more confident about China’s tech companies despite trade wars concerns. 

Regarding this, Sat Duhra from Janus Henderson Investors said, “The recent DeepSeek announcement is a timely reminder that behind the scenes, industrial policy has pushed many sectors toward world-class status.”

Stock markets remained stable as Washington announced gentler trade restrictions against China. Wall Street brokers have also shifted to optimistic predictions regarding the tech industry.

According to Deutsche Bank’s Peter Milliken’s Wednesday report “In 2025, China in one week launched the world’s first sixth-generation fighter plane and its low-cost AI system, DeepSeek.”

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